BSP notes that both direct equity and portfolio investments posted significant growth in the first half of the year compared to the levels in the comparative period a year ago.
Direct investments as reflected by BSP-registration records grew by 295 percent to $1.3 billion in January-June 1999 from $324 million in the same period last year. Switzerland accounted for 60 percent of this flow, due largely to increased investments by a dairy firm in its subsidiary in the Philippines. Consequently, the manufacturing sector received the biggest allocation, capturing 65 percent of the total direct equity infusion. However, in terms of outstanding stock, the United States remained the top investor with $2.8 billion, closely followed by Japan with $2.2 billion.
Meanwhile, the balance of payments (BOP) report showed a $631 million net foreign portfolio investment inflow as of end-June 1999, significantly higher than the $389 million recorded during the same period in 1998. Gross inflows amounted to $4,819 million while withdrawals reached $4,188 million. As indicated by the registration records, the United Kingdom and the United States were the top investors. Equity securities of banks and other financial institutions continued to be the most favored portfolio investment area.